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- Berachain paused its network to protect $12M in user funds after Balancer hack.
- Coordinated validator action shows trade-off between security and decentralization.
- Recovery success will impact user trust and confidence in Layer 1 blockchains.
Berachain, an Ethereum-compatible Layer 1 blockchain, has taken swift action following a massive $117 million hack on the Balancer protocol. The attack targeted the Ethena/Honey tripool using complex smart contract transactions, affecting multiple blockchains including Ethereum, Base, Optimism, and Polygon. To safeguard users, Berachain’s validators coordinated a temporary network pause, allowing developers to implement an emergency fix.
The Berachain validators have coordinated to purposefully halt the Berachain network as the core team performs an emergency hard fork to address Balancer V2 related exploits on the BEX.
— Berachain Foundation 🐻⛓ (@berachain) November 3, 2025
This halt has been executed purposefully, and the network will be operational shortly upon…
The pause is more than a simple hard fork, as recovering the stolen funds involves a deeper, targeted rollback. The foundation assures the community that operations will resume once the assets are secure, emphasizing the short-term nature of the shutdown.
Validator Coordination and Community Response
Chief Smokey Officer Smokey The Bera addressed the situation on X, acknowledging the difficult decision. “Approximately $12 million of user funds were at immediate risk,” he stated, adding that the coordinated pause prioritized user protection over decentralized purism.
The Berachain validators have coordinated to purposefully halt the Berachain network as the core team performs an emergency hard fork to address Balancer V2 related exploits on the BEX.
— Berachain Foundation 🐻⛓ (@berachain) November 3, 2025
This halt has been executed purposefully, and the network will be operational shortly upon…
The response illustrates Berachain’s ability to act decisively in emergencies, despite its network being less decentralized than Ethereum. Community reactions are mixed: some see the halt as necessary, while critics argue it conflicts with blockchain decentralization principles.
Implications for DeFi Security and Investor Confidence
This hack comes shortly after Greenlane Holdings raised $110 million in funding for Berachain, split between $50 million in cash and $60 million in BERA tokens. The round was led by Polychain Capital and involved major investors including Blockchain.com, Kraken, and North Rock Digital, signaling growing institutional interest in Berachain prior to the exploit.
The incident highlights the tension between security and decentralization in DeFi. Quick intervention prevented further losses, but the network pause raises questions about how decentralized blockchains should respond to emergencies. Industry experts note that similar measures have been taken by other projects like Sui and Hyperliquid, emphasizing that user protection often trumps strict adherence to decentralization.
Berachain’s proactive approach demonstrates a commitment to safeguarding users while navigating the challenges of decentralized governance. The network’s recovery and transparency will be crucial in restoring confidence and proving that even Layer 1 blockchains can act decisively in the face of DeFi threats.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Balancer Offers 20% Bounty to Hacker After $116M DeFi Exploit — Time’s Running Out!
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